The so-called "index effect" can boost a stock's price if only temporarily (at best). The possibility of graduating to a major stock index was a key factor driving up the value of adtech company AppLovin (APP 4.55%) on Hump Day. Its shares closed just shy of 5% higher that trading session, which looked particularly impressive next to the S&P 500 index's basically sideways trajectory.

Time for a rebalancing

Speaking of the S&P 500, that benchmark stock index is slated to get its regular adjustment this coming Friday, June 6 after market close. With 500 titles, the company that manages it, S&P Dow Jones Indices, typically swaps out several stocks for fresh titles when making such adjustments.

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AppLovin is an excellent candidate for S&P 500 inclusion for the upcoming changes, at least in the eyes of Bank of America analysts. The bank issued a research report flagging several stocks it believes could be newly included on the index, including AppLovin.

While that's encouraging, AppLovin isn't Bank of America's "prime candidate" for S&P 500 index inclusion. That honor goes to next-generation online securities brokerage Robinhood Markets. Additionally, the bank mentioned no less than 12 other stocks as having a better-than-average chance of advancement, including Carvana and Interactive Brokers Group.

Buyer -- or seller -- beware

While the Bank of America report certainly counts as informed speculation, at this point it's only that -- speculation. AppLovin stock observers, be they bulls or bears, would be well advised not to trade the stock on that basis alone and instead focus on the company's fundamentals.